Supplier’s alignment with integrator’s servitization strategy: the perspective of the relational view

Abstract

Purpose A firm’s servitization strategy transforms the operating logic of the traditional manufacturing supply chain; however, the mechanisms through which integrators engage suppliers in a servitization context and maintain strategic alignment remain underexplored. This study aims to examine the mechanisms by which upstream component suppliers are involved in servitization initiatives. Design/methodology/approach Drawing on the relational view, this study examines the relationship between integrator power and supplier strategic alignment using regression analysis of 91 Chinese integrator–supplier dyads spanning the period from 2011 to 2022. Findings This study provides a detailed examination of the inverted U-shaped effect of the integrator’s power on the supplier’s strategic alignment, arising from the joint influence of complementary and lock-in effects. Furthermore, the integrator’s strategic rhythm is proposed as a moderating mechanism that shapes interfirm relationships. Specifically, a broad strategic scope weakens the complementary effect at low levels of the integrator’s power and attenuates the lock-in effect at high levels of the integrator’s power, thereby flattening the inverted U-shaped relationship. Research limitations/implications This paper emphasizes the supplier’s distinctive role in providing “service for the customer’s customer” within the context of servitization, and addresses the “embedded paradox” that arises within interdependent relationships, as framed by the relational view. Originality/value The double-edged sword effect of power is emphasized in the context of servitization, and a rhythm perspective is proposed to enrich our understanding of service categories and service orientation within servitization strategy.